EQS-News: wienerberger with solid Half-Year performance well-placed for market recovery
Source: EQS
wienerberger with solid Half-Year performance well-placed for market recovery
With weaker market demand as a result of interest rates being cut more slowly than expected, the company has continued to manage costs effectively: wienerberger reacted swiftly and achieved an operating EBITDA of € 400 million (H1 2023: € 454 million) by optimizing cost structures further and restructuring in time where necessary and realizing organic growth by innovations in particular in the renovation and infrastructure segments. The ongoing self-help program aimed at earnings growth and efficiency enhancement, which contributed € 46 million to earnings last year, also remains on track. “wienerberger delivered a solid 2024 Half-Year performance and is well-placed for market recovery in the future. With our sustainable solutions for affordable housing construction, energy-efficient renovation, and water management, we are not only continuously improving people’s quality of life but are also proactively part of the solution when it comes to tackling climate change and its effects”, comments The acquisition of Globally, the market for renovations has been relatively stable in the first six months of 2024, and the infrastructure sector has even seen a slight increase. For new residential housing, the developments have been more diverse across wienerberger’s end markets. The recovery of new residential housing markets in Shaping the future with innovative strength Amidst a changing macroeconomic situation, wienerberger holds firm in its commitment to sustainability. Last year, the company had reached the goals of its last three-year sustainability program and set itself extended and more ambitious targets for 2026, particularly with regard to a further reduction in emissions and the promotion of a circular economy. The new sustainability program includes new benchmarks for water and waste management. In addition, wienerberger will generate 75% of its total revenue from building products contributing to net zero buildings by 2026, such as integrated roof solutions, exterior walls and façades, heating and cooling solutions and systems for the use of solar energy. By offering innovative solutions, supported by modern cutting-edge technology, wienerberger is helping to reduce emissions, save natural resources and mitigate the effects of climate change on people and the environment. wienerberger is also committed to promoting diversity and inclusion as part of its new social goals. Outlook: 2024 and beyond The initial market assumptions for 2024 were based on the expectation of a recovery in residential housing markets. This has not fully come to pass, caused in part by slower-than-expected interest rate cuts, subduing bank lending. In particular, demand for single-family housing is below expectations. Several national governments in wienerberger’s end markets have launched or announced public subsidy programs for their respective construction sectors, but their impact will only be felt next year in most cases. Political uncertainty will remain a negative factor in several major countries and at least until after the presidential elections in the For the 2024 financial year, the company nevertheless continues to expect a solid performance and operating EBITDA guidance of € 800 – 820 million. Looking beyond the bottom-building year 2024, an overall recovery shift across markets is expected for next year, when governmental stimulus programs will take effect and interest rates are likely to be cut further. For wienerberger, the cost-efficiency measures taken in H1 2024 will still contribute positively to results in 2025 with a full market recovery expected. For 2026, a normalization of the market level is expected. For the complete report on the first half of 2024, please visit https://www.wienerberger.com/en.html.
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Language: | English |
Company: | |
Wienerbergerplatz 1 | |
1100 |
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Phone: | +43 1 60 192-0 |
Fax: | +43 1 60 192-10159 |
E-mail: | investor@wienerberger.com |
Internet: | www.wienerberger.com |
ISIN: | AT0000831706 |
Listed: | |
EQS News ID: | 1967001 |
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1967001 14.08.2024 CET/CEST